UPDATE: Bank of America Initiates PulteGroup at Neutral on Early Transition Stages
In a report published Wednesday, Bank of America analyst Michael A. Roxland initiated coverage on PulteGroup (NYSE: PHM) with a Neutral rating and $23.00 price target.
In the report, Bank of America noted, “We initiate coverage of PulteGroup (PHM) with a Neutral rating and $23 price objective (PO), which implies a 21% total return. PHM is a 'show me' story, one that investors could benefit from if their investment horizons extend out a few years. PHM is in the early stages of a transition to focus the company on returns rather than growth by employing more efficient operating practices including floor plant standardization, detailed cost analyses, and value engineering. However, given the stock's upside versus other builders we cover and the fact that gross margins have trailed the broader industry, we launch with a Neutral rating ahead of signs of return and margin improvement from PHM's strategic initiatives.”
PulteGroup closed on Tuesday at $19.02.
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